079: What the Post-Election Market looks like from Trends to Market Projections with Frances Newton Stacy

 

Today it is my pleasure and a privilege to welcome back economist and trader, Frances Newton Stacy. She works for Optimal Capital as the director of portfolio strategy. Frances is also a frequent guest on both CNBC, as well as Fox Business News as a commentator on Central Bank Policy. She also blogs about the trading community by helping to recognize key cycles and significant support and resistance levels. Today we’re talking about what the post-election market looks like from trends to market projections. We’re also talking about the cost of living increase, interest rates, and the commercial real estate space. It is always a pleasure to have Frances on the podcast.

Minute Markers:

00:22 – Hello and Welcome

01:45 – The post-election market

03:50 – Market pricing projections, capital gains, and raising taxes during a pandemic

08:00 – Cost of living increase

13:47 – What’s going to happen with

18:30 – Interest rates and national debt

25:00 – Politics and neutrality and “being in the middle”

27:30 – Commercial real estate space

28:30 – Thanks to Frances

29:07 – Thank you for listening to the Big Mike Fund Podcast

Quotes:

“Because of its populism and people are getting left behind, and there’s a lot of social angst, the country is moving to extremes in both directions—depending on who they follow or who their leaders are. For a lot of people, both sides were taking it a little too far for their comfort level, and markets like certainty.” – Frances Newton Stacy

“We statistically still don’t know how many Americans are falling through the cracks because you don’t know how many Americans are going to actually starve to death. We have the eviction moratorium expiring in December. We have the extended unemployment benefits expiring in December.” – Frances Newton Stacy

“We’re not going to be able to service all of that debt if interest rates are moving higher, and that’s the reason that the FED would come in with yield curve control is because they would foresee the deflationary challenge coming from defaults if interest rates went up too far, too fast.” – Frances Newton Stacy

“I don’t know if some of the more progressive parts of the Democratic Party—if they should come into power—what their spending will look like around that issue and how they think about that issue versus how the moderates think about that issue. But I’m hoping that common sense prevails.” – Frances Newton Stacy

“It’s just hard. It’s just hard to not go from one room to the other and sound very political because that is what people understand, that’s the language that they speak, and that’s the culture that we’re living in. It’s tough.” – Frances Newton Stacy

Resources:

Frances Newton Stacy, Twitter

Frances Newton Stacy, email: frances@optimalcapital.com

Ray Dalio’s book “Big Debt Crisis”: https://www.amazon.com/gp/product/B07GLBHM48/ref=dbs_a_def_rwt_bibl_vppi_i1